| Summary of income tax provision (benefit) |
| | | For The Years Ended | | | | | December 31, | | | | | 2015 | | | 2014 | | | Federal: | | | | | | | | Current | | $ | - | | | $ | - | | | Deferred | | | (434,364 | ) | | | (588,940 | ) | | | | | | | | | | | | State and local: | | | | | | | | | | Current | | | - | | | | - | | | Deferred | | | (22,664 | ) | | | (5,949 | ) | | | | | (457,028 | ) | | | (594,889 | ) | | Change in valuation allowance | | | 457,028 | | | | 594,889 | | | Income tax provision (benefit) | | $ | - | | | $ | - | |
|
| Schedule of components of deferred tax assets and liabilities |
| | | Years Ended December 31, | | | | | 2015 | | | 2014 | | | Deferred Tax Liability: | | | | | | | | Furniture, fixtures, equipment and intangibles | | $ | (18,784 | ) | | $ | (32,089 | ) | | Other | | | - | | | | (27,258 | ) | | Warrants | | | (1,055,849 | ) | | | (1,039,489 | ) | | Debt discount | | | (424,920 | ) | | | - | | | Deferred Tax Assets: | | | | | | | | | | Stock options for services | | | 1,684,668 | | | | 1,275,925 | | | Net operating loss carry-forward | | | 4,765,793 | | | | 4,510,554 | | | Derivative liabilities | | | 171,716 | | | | - | | | Reserve for future charge backs and other | | | 50,356 | | | | 28,309 | | | Valuation allowance | | | (5,172,980 | ) | | | (4,715,952 | ) | | Net deferred tax assets (liabilities) | | $ | - | | | $ | - | |
|
| Summary of reconciliation of federal income tax provision from continuing operations at statutory rate |
| | | Years Ended December 31, | | | | | 2015 | | | 2014 | | | Federal income tax benefit at statutory rate | | $ | (441,270 | ) | | $ | (580,257 | ) | | Increase (decrease) in income taxes resulting from: | | | | | | | | | | State and local income taxes | | | (22,667 | ) | | | 204,366 | | | Change in deferred tax asset valuation allowance | | | 457,028 | | | | 367,359 | | | Non-deductible expenses and other | | | 6,909 | | | | 8,532 | | | Income Tax Expense | | $ | - | | | $ | - | |
|